Consumer Watchdog is a (fiercely) independent consumer rights and advocacy organisation campaigning on behalf of the consumers of Botswana, helping them to know their rights and to stand up against abuse. Contact us at watchdog@bes.bw, call us on +267 3904582 or find us on Facebook by searching for Consumer Watchdog Botswana. Everything we do for the consumers of Botswana has always been and always will be entirely free.

Friday, 22 November 2013

The Voice - Consumer's Voice

Dear Consumer’s Voice #1

I just need to confirm a company's legitimacy with you. The company name is xforex they say one should register with them and start trading markets they offer training for free but as one progresses you pay. They ask for bank details and to start one needs a sum of P900.

They are available even on Facebook suggestions, please advice thank you.

I’ve been asked by many people about XForex, many of them asking if it’s connected to the Eurextrade Ponzi scheme scam that collapsed earlier this year. In fact XForex is slightly different, it does actually seem to be a legitimate foreign exchange mechanism, but makes promises that are absurd. The first thing to mention is that ordinary people like you and me don’t make money by trading foreign exchange. The market is so volatile, the changes usually so slight and the companies like XForex so suspicious that we’re not going to make a fortune, if anything from it. Think of it this way. If big commercial banks don’t make fortunes this way with the trillions they have to invest, how can mere mortals like us? The only people making money from Forex trading are the people running the companies encouraging us to hand over our cash.

I think you can judge these schemes by the way they operate. Eurextrade snared people by accosting them on the streets and in spicy chicken restaurants, XForex do it on Facebook by making extravagant claims. One advert on Facebook showed a room full of hundreds of scattered banknotes, announcing that, “Mr. Nayang from Botswana Has Made $7871 from EUR/USD Trading Last month! So Can You!”

They also say things like: “All you Need is $100 to start trading up to $40,000! With Our Easy Trading system and personal account managers. You can make your second income in days or even hours!”

These claims are all lies.

The picture they use, by the way, is a stock photo available on the internet, it’s nothing to do with XForex. You can tell this scheme can’t be trusted, can’t you? Please don’t risk your money.

Dear Consumer’s Voice #2

I received an email from the Office of the Personnel and Employment Manager from Shell Oil Company in Malaysia saying that I had been appointed as a Logistics Manager in Kuala Lumpur in Malaysia. It said that I would earn $3,900 every month as well as getting travel insurance, medical insurance, a 5-bedroom house, free education for my children, a Toyota Camry and a driver and 60 days leave every year.

Would you please assist me with verifying the authenticity of the offer letter? I’m still skeptical. Please assist.

You are right to be skeptical. This is clearly a scam.

The clues are there if you look closely. Firstly I would expect a major oil company to use it’s own email domain, ending in “shell.com”, not the free email address that these guys use. They would also use landlines, not just cellphones.

Also real recruitment always involves an interview, even if it’s just over the phone. Major companies don’t offer highly paid jobs to people they’ve never met and don’t know. They simply don’t.

This is an “advance fee” scam. The whole process is about an up-front payment they want from you. In one of the emails you sent they explain what they want. They say “you are hereby advised to contact the Malaysian Traveling Agency at the below details … You are also advised to Wire the $895 of them per their Instruction.”

That $895 is what the whole thing is about. You can be certain that if you sent the money they would just keep on asking for more and more money until you either realised you were being scammed or your account ran dry.

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We support consumers in Botswana, educating them on their rights, helping them to fix problems and exposing scams. Email us at watchdog@bes.bw, or call on +267 3904582 or fax on +267 3911763. It's all free, you've nothing to lose!